The western sentinel. [volume] (Winston-Salem, N.C.) 1887-1926, 1887-12-15

it idly holds money uselessly sub
tracted from the channels of trade,
there seems to he reason for the claim
that some legitimate means should be
devised by the government to restore
in an emergency, without waste or
extrayaoance, such money to its place
among the people. If such an emer-
gency arises there now exists no clear
and uudoubted executive power of
relief Heretofore the redemption
Of three per cent bonds which were
payable at the option Of the govern
ment has offered means Of the dis
bursement OF the excess OF our rev.
enues; but these bonds have all been
retired and there are no bonds out
standing, tie payment of which we
have the right to insist upon. The
contribution TO the sinking fund
which furnishes the occasion for ex-
| penditure in the purchase of bonds
has been already made for the cur
reEt year, so that there is no outlook
in that direction in the present state
of legislation. The only pretense of
any existing executive power to re-
store at this time any part of our sur
plus revenues to the people by its
expenditure consists IN the supposi-
ton that the Secretary of the Treas
ury may enter the market and pur-
chase the bonds of the government
not yet due at q rate ofp-emidm
be agreed upon. The only pro-
vision of law from which such a
power could be deprived isfound
in an appropriation bill passed
number Of years ago, and it is sub
| ject to the suspicion that it was in
tended as temporary and limited in
its application instead Of comforting
a continuing discretion and author
ity. No condition ought to exist
which would justify the grant of pow.
er to single oificial-upon his judge
| ment Of It's necessity withhold
from Ut release to the business Of the
people, in an unusual manner, mon
| ey held IN the treasury, and thus af-
feet at his will, the financial situa-
tioh Of the country, and if it is
deemed wise to lodge in the Secreta-
ry Of the treasury the authority in
the present juncture to purchase
bonds, it should be plainly vested
and provided as far as possible with
such checks and limitations as will
define this officials right and dis
cretion, and at the same time relieve
him from undue responsibility.
HTE QUESTION OF PURCHASING BONDS.
In the Consideration of the ques-
ton of purchasing bonds as q means
of restoring to circulation the sur
plus money accumulating in the
treasury it should be born in mind
that premiums must of cOur Sc be
| paid upon such purchase as may be
large part Of tt!!.v<5e bonds held as
investments which cannot be pur-
| chased at any price, and that combi-
nations among holders who are will
ing to sell may unreascnably enhance
| the cost of such bonds to the gov
ernment. 1t has been suggested that
the present bonded debt might be re-
| funded at q low rate of interest and
the difference between the old and
new securities IN cash, thus finding
use for the surplus in the treasury.
The success of this plan it is. appar-
ent must depend upon the volition
of the holders of the present bonds
and it is not entirely certain that the
| inducement which must be offered
would result in more financial bene-
| fit to the government than the pur-
chase of bonds, while the latter prop
osition would reduce the principal of
the debt by actual payment instead
| nf VT -
deposit the money held by the gov
ernment in bonds throughout the
country for use by the people is, it
seems to me, exceedingly objection
able in principle, as establishing too
close relationship between the oper-
ations of the government treasury
and the business Of the country and
too extensive collection Of their
money, thus fostering an unnatural
reliance in private business on public
funds. Ii this scheme should be
adopted it should only be done as a
temporary expedient to meet an nr-
gent necessity. Legislative and ex-
ecutive effort should generally be in
the opposite direction and should
have tendencyssto divorce as much
apd as fast as can safely be done, the
Treasury Department. from private
enterprise. OF course it is not ex-
pected> That unnecessary and extrav-
agant appropriations will be madekfor
the purpose of avoiding the accumu-
lation of an excess of revenue Such
expenditure, besides the demorliza-
tion of all just conceptions of public
duty which it entails, stimulates a
habit of reckless improvidence not
in the least consistent with tie mis-
sion of our people or the high and
beneficient purposes of our govern
/ ment.
| GRAVITY OF THE SITUATION.
have deemed it my duty to thus
bring to the knowledge of my coun-
trymen, as well as to the attention
of their representatives charged with
the responsibility OF legislative relief
the gravity of our financial situation.
/ The failure of the Congress hereto
fore to provide against the dangers
which it was quite evident the very
nature of the difficulty must necessa-
fily produce caused condition of f.
nancial distress and apprehension
since your last adjournment which
taxed to the utmost al the authority
1 and expedieslts vithln executive con-
! troll, and these appear now to be ex-
| h.tus sd. IF d. aster results from the
continued inaction of Congress the